Donna Owens, director of the Ohio Department of Commerce, issued a warning today to church members and others in Ohio religious organizations to be on guard against investment swindlers. These swindlers may pose as one of the faithful to gain their victims' trust and life savings.

"As appalling as it is, there are con artists who will exploit religion in order to get prospective victims to drop their guard," Director Owens said.

Securities regulators in other states have reported that promoters have told investors that they knew exactly where to drill for oil in Israel because of certain passages from the Old Testament. A congressman was among the investors in another scam in which the treasurer of the largest Baptist church in Alabama collected an estimated $18 million from 193 investors, with promised returns of 8-30 percent per month. Other investment schemes involved self-proclaimed "Christian" financial planners and others who claimed to be able to provide "divinely inspired" advice on coins, real estate and precious metals.

"Many con artists advertise in religious publications and on religious radio stations," said Securities Commissioner Thomas Geyer. "We have heard of others who have rented church basements to lure church members into an investment scheme."

Commissioner Geyer advises Ohio investors to follow three steps to protect themselves from con artists who prey on the faithful:

• First, investors should be on their guard for investment promoters who claim to have special ties to, or endorsements from, a faith or congregation.

• Second, don't accept the promoter's word. Check to see if the salesperson is licensed to sell securities in Ohio or if the security is registered by calling the Ohio Department of Commerce's Investor Protection Hotline at (800) 788-1194. Columbus area residents should call (614) 644-7381.

• Third, if you suspect that you have been defrauded, call the Investor Protection Hotline immediately at (800) 788-1194 or (614) 644-7381.

An Investor Alert titled "Preying on the Faithful" is available from the Ohio Department of Commerce's Division of Securities. For a free copy, please write or call:

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